A beneficial supply shock would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if the shock is temporary; shift to the right if the shock is permanent.
A
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A key causal link in the interest-rate-based transmission mechanism for monetary policy is from
A) investment to the interest rate. B) the money supply to excess reserves. C) a monetary policy action to excess reserves. D) real GDP to investment.
Which of the following is not an example of nonprice competition?
a. Kellogg's introduces Froot Loops with Lemonberry Swirls. b. Sterling Planet provides consumers the opportunity to purchase renewable electricity in upstate New York. c. Mountain Dew sells "Livewire" orange soda in the summer of 2003. d. Nissan lowers the interest rate charged for new automobile financing. e. Honda produces a hybrid version of its Civic.